Memorandum of Conversation, by the Assistant Chief of the Division of Brazilian Affairs (Braddock)

Participants: Carlos Martins, Ambassador of Brazil
A–BR—Mr. Braden39
BA—Mr. Braddock

The Ambassador took up again the question of coffee ceiling prices. Pie said he had had telegrams from the Minister of Fazenda and the President of the National Coffee Department, as a result of which he wished to submit a second proposal, namely, that the ceiling price for coffee be increased by five cents after the expiration of the present three-cent subsidy. He stated that this solution would be as acceptable to Brazil as suspension of the ceilings against delivery guarantees by the Brazilian Government as previously proposed. Many of the Brazilian coffee producers, according to the Ambassador, were not very pleased at the prospect of competing with Government coffee stocks offered at three cents above the ceiling. Sr. Martins said that the Foreign Office was taking up again with the American Embassy in Rio the coffee discussions that had been broken off last November.

Mr. Braden told the Ambassador that the coffee ceiling price question had been discussed at a large meeting in his office only the day before, in which representatives of the OPA and the OES had been present. He stated that the arguments for suspension had been strongly presented and that the OPA and OES representatives promised to present the case anew to Mr. Bowles, but that it was the impression of the Department’s representatives that the price control and stabilization agencies would not be willing to remove the ceilings. Mr. Braden said that thereafter the only recourse would be to John Snyder40 and then to the President, He suggested that since the OES and OPA representatives had promised a reply on removal of the ceilings within the next few days, it would be better to withhold the presentation of [Page 513] Brazil’s proposal for a five-cent increase in the ceiling price until their reply had been received.

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D. B[haddock]
  1. Spruille Braden, Assistant Secretary of State for American Republic Affairs.
  2. Director of War Mobilization and Reconversion.